Step 1 - 20 to buying a home
- Agent finds property to sell – either by canvassing properties; or via multi-agent sales networks; or by a direct approach from the owner to an estate agent
- Agent secures written mandate from the owner to sell the property in return for a commission
- Agent obtains a mandatory written and signed condition disclosure from owner – legally required (Property Practitioners Act)
- Agent estimates the value of property and advises the owner regarding a realistic asking price
- Agent finds willing and able buyers – by using property portals, media advertising and show houses (pre Covid)
- Buyer views property
- Buyer is counselled by agent regarding both the owners mandatory condition disclosure and the professional home inspection option – both of these steps are legally required of the agent by the Property Practitioners Act
- A bank, other finance provider, or bond originator does credit checks on buyer and determines the maximum loan finance available to the buyer from bank.
- Buyer assesses affordability, in respect of cash deposit on hand and bond finance available, and makes an offer to purchase (OTP) the property
- Agent negotiates price and contract details with buyer and seller
- Agent finalises sales contract (contract usually subject to bond confirmation and could also, at the buyer’s discretion, be subject to a satisfactory home inspection)
- Bank determines the collateral value of the property – either via a visit to property by a valuer appointed by the bank, or by a desktop valuation.
- Buyer receives home inspection report and confirmation by bank of availability of sufficient loan finance and the sale contract is confirmed
- Bank usually also makes its loan offer subject to the buyer obtaining adequate homeowner’s insurance cover
- A conveyancer attorney is instructed by seller (agent) to attend to transfer
- The conveyancer attorney receives confirmation of bond finance from the bank’s attorneys and the cash balance of the sale price from the buyer; together with:
- Electrical CoC arranged by agent (for seller) – paid by seller
- Wood destroying (beetle) certificate arranged by agent (for seller) – paid by seller
- Plumbing CoC (including hot water geyser) arranged by agent (for seller) – paid by seller
- Gas CoC arranged by agent (for seller), if the property has a gas installation – paid by seller
- Electric fence CoC arranged by agent (for seller), if the property has an electric fence installation – paid by seller
- An attorney (instructed by bank) arranges for the bank’s bond to be registered on the title deeds of the property -bank attorney’s services paid for by buyer
- The conveyancer attorney (instructed by seller) registers the transfer of ownership with the Deeds Office – attorney’s services paid for by buyer
- Agent receives commission from conveyancer attorney and the property owner (seller) receives the net balance of the sale price
- Buyer (new owner) takes occupation of the property.
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